How have you set up your mortgage?
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Category: General Chat
Forum Name: General Chat
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URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=34956
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Topic: How have you set up your mortgage?
Posted By: kebakat
Subject: How have you set up your mortgage?
Date Posted: 29 July 2010 at 10:34am
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I'm wondering how everyone has their mortgage set up and why..
We have typically just fixed the whole lot for 2years but I've been a newbie to the mortgage thing and didn't realise until recently you can split it up and it can work really well at getting it paid down quicker and spreading your risk.. Right now we have the whole lot floating just until we figure out how we wanna set it up as we just came off a nasty interest rate. |
Replies:
Posted By: caliandjack
Date Posted: 29 July 2010 at 10:41am
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Ours is split, we originally had most of it on fixed, and a small portion on capped floating rate. It meant we could pay off extra if we wanted to. In the end it didn't work out that way. ------------- http://lilypie.com" rel="nofollow">   [/url] Angel June 2012 |
Posted By: fire_engine
Date Posted: 29 July 2010 at 10:47am
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We have most on 2 year fixed and $10K on revolving credit. That is currently fully paid off but we'll use it partly up while I'm on mat leave. We went for 2 years fixed b/c a) that was a good rate and b) it fitted with our plans to have #2. RC also functions as an insurance policy - we don't have health insurance but it meant that if DS needed grommets or something and there was going to be a long wait, we would have some capacity to pay for that without taking on another debt. We also put as much as possible onto the mortgage each month which means it's an 8 year mortgage.
Definitely worth talking to a mortgage broker. When we renewed, we didn't go back through them but DH had learned heaps about mortgages and wrote his own programme so he could look at all the possible combinations (which the bank websites couldn't do). ------------- Mum to two wee boys |
Posted By: flakesitchyfeet
Date Posted: 29 July 2010 at 10:56am
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All on floating under BNZ total money, so whatever is in our 'positive credit accounts' offsets our mortgage & I assume credit card, not sure about though a don't really use it. We're paying above minimum because it's more worthwhile than savings and are expecting a tighter year next year, in which we can then borrow against it easily enough if we wish to. -------------  http://lilypie.com"> |
Posted By: GuestGuest
Date Posted: 29 July 2010 at 11:03am
We are the same as Flissty. The revolving credit is the best thing we have ever done, it has made it so much quicker to pay off. We just started it last year and we paid off five times the amount (all principal) that we had paid off the year before when we were just fixed 
I would recommend talking to NZ Home Loans. We are using their exact method but stayed with ASB (ie we just stole all of their ideas  )
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Posted By: bopmum
Date Posted: 29 July 2010 at 11:05am
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We have total money with BNZ as well, we think it works great for us. Our mortgage is split into 5 different loans and are all on different rates, fixed and floating. I should really learn and remember more about it but coz DP works for the bank - he takes care of everything! ------------- http://lilypie.com"> 
http://lilypie.com"> 
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Posted By: mummy_becks
Date Posted: 29 July 2010 at 11:06am
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All floating at the moment. We will look at fixing some of it thou soon. ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |
Posted By: caliandjack
Date Posted: 29 July 2010 at 11:06am
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We are with Westpac but that's only cause Dh qualifies for the Govt Employees package which means no fees. A lot of people seem to be switching to Kiwi Bank as they're rates are really good. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: HuntersMama
Date Posted: 29 July 2010 at 11:12am
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Not very well! All fixed at the moment until late next year. ------------- http://lilypie.com"> 
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Posted By: kebakat
Date Posted: 29 July 2010 at 11:26am
| We are with BNZ currently. We have spoken to kiwibank who recommended a 3 way split, some 4yr fixed, some 2yr fixed and some floating. |
Posted By: clover
Date Posted: 29 July 2010 at 12:03pm
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We're with kiwibank and have ours split 3 ways, 2 years, 1 year and floating. I did that because the longer length rates were crap at the time. Our 1 year will be coming up soon and I think I'll just leave it floating for a while. ------------- http://lilypie.com"> 
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Posted By: AandCsmum
Date Posted: 29 July 2010 at 12:40pm
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I have to think about this as our mortgages are up for renewal this Nov, we're on a reasonably good 5 year rate that we definitely won't get again. ------------- Kel http://lilypie.com"> 
A = 01.02.04 & C = 16.01.09 & G = 30.03.12 |
Posted By: peachy
Date Posted: 29 July 2010 at 12:43pm
This is what we have done since day one and it works brilliantly for us! I totally recommend it. ------------- http://lilypie.com">  http://lilypie.com">
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kebakat wrote:Posted By: _SMS_
Date Posted: 29 July 2010 at 1:06pm
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We choose to fix ours for 5 years because the rate was so low. At this stage we are just paying the minimum payment until i go back to work anyway. We fixed ours at 7% -------------  
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Posted By: caliandjack
Date Posted: 29 July 2010 at 1:15pm
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Our fixed rate is due for renewal in December, we will most likely re-fix as we'll be on one income by then and due to our living situation (ie: being in Akl for 3 years) we prefer to have certainty around re-payments. Even if it means paying a slightly higher interest rate initially. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: BeLoved
Date Posted: 29 July 2010 at 2:50pm
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We have it split 3 ways, 1 is at 2 years, 1 is at 1 year and then a smaller portion on floating which we hope to pay off in lump sums when we can.
We are with ASB and this is what we were advised to do by our mortgage broker. He said its a bit of a best of both worlds way to look at it. ------------- http://alterna-tickers.com"> 
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Posted By: T_Rex
Date Posted: 29 July 2010 at 4:43pm
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We have a big chunk flexible but mostly we try to keep that close to fully paid off as it's our emergency fund. Ours isn't big enough to warrant more than a 2-way split, so we have the rest fixed for three years. We pay more than the minimum on that, and have made the maximum lumpsum payment they allow without penalty each year so the principal is going down fast too.
We will refix that portion for 2 years in November because that fits in nicely with our current plans for babies - it will hopefully allow us to be refinancing when we make the decision how many hours I will return to work after baby2, so we can make payments more or less depending what we decide. I like that that timing will mean our work decisions will dictate our mortgage decisions, not the other way around. ------------- http://lilypie.com">  http://lilypie.com">
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Posted By: amme_eilyk
Date Posted: 29 July 2010 at 6:36pm
| we are just about to look at changing banks and redoing our mortgage, we had it fixed for one year originally, but now I am looking to do maybe 10 or 20k on revolving and the rest on fixed long term as interest rates will only go up. |